Top Ten Issues Impacting the Commercial Real Estate Industry

Dated: 01/25/2020

Views: 86

The Counselors of Real Estate, a 1,100-member organization, identified the ten issues that are inclined to have the most impact on real estate. 

1.            Infrastructure

2.            Housing

3.            Weather and Climate Related Risks

4.            Technology Impact

5.            End of cycle Economics

 

6.            Political Division

7.            Capital Market Risks

8.            Population Migration

9.            Volatility and Confidence

10.        Public and Private Indebtedness

 

Lets focus on the top three:

1.  Infrastructure
U.S. infrastructure is the primary concern among the issues expected to have the most impact on real estate as is tied to sustainable growth.  At the National Association of Real Estate Editors’ annual conference in Austin, TX, the Counselors of Real Estate noted that the U.S. must invest in infrastructure to compete globally.  They state that the US is lagging other nations on infrastructure investment.  Roads, bridges, tunnels, railways, airports, the power grid, water systems, and levees are giving way with greater frequency.

2.  Housing: 
As the gap is widening between the increasing price of homes and the decreasing level of ability to pay, the causes can be found both on the supply and the demand side of the housing equation.  The stability of the middle class is threatened by the affordability of housing in addition to the limits on the deductibility of state and local taxes.

3.  Weather and climate-related risks:
Real estate investors are requiring that climate risk be assessed and factored into return projections and day-to-day decisions.  Weather and climate-related risk has emerged as a new aspect of fiduciary duty and what it means to assess, disclose, and manage these risks for real estate investments.  At the conference presentation, it was noted that real estate investors can no longer rely on historic performance to predict future returns.  With the frequency and intensity of events increasing, the report states that weather and climate-related events present physical and operational risks for real property.

What is your home worth?
Click here for an answer in 20 seconds.  
Sign up for a free home valuation

Looking to buy a home?  Looking to sell a home?  Call me!  914-819-6591

Blog author image

Shaun Manning

Shaun's focus is on residential real estate in Fairfield, Westchester, Putnam, Dutchess and the surrounding counties. Licensed in New York and Connecticut, Shaun is also Commercial and Investment Rea....

Latest Blog Posts

The Facts About Unsolicited Calls During This State of Emergency

Did you know that unsolicited sales calls are now prohibited during this state of emergency?  This measure is to ensure residents “receive potentially life-saving notifications in

Read More

WHAT TO REPAIR BEFORE YOU LIST

When you’re getting ready to list your home, it’s of the upmost importance to ensure you are showing it in the best light. Taking time to highlight its strengths and fix up some of its

Read More

5 NEGOTIATING TACTICS THAT KILL A SALE

Negotiation is a subtle art in real estate, but skilled negotiators can usually find some common ground that satisfies all parties. On the other hand, using the wrong negotiation tactics can sink a

Read More

Westchester New York Homes By Community

Are you planning on moving to Westchester County in New York? If so then check out this small list of communities I serve.BronxvilleEastchesterLarchmontMamaroneckNew

Read More